VECCI Chief Executive Mark Stone said the State Government’s 10-year strategy, including a $2 billion 2015-16 budget commitment to grow the train and tram manufacturing industry in Victoria, is "a win for jobs and skills in our state"

"Trains, Trams, Jobs 2015-2025 – Victorian Rolling Stock Strategy gives rolling stock manufacturers and suppliers throughout Victoria the long-term certainty they need to invest in their workforces, plant and equipment," Mr Stone said.

"The initial investment will be significant for local manufacturers as it includes $274 million for 20 E-Class trams and $257 million for 21 VLocity carriages, constructed by Bombardier in Dandenong, and $90 million for five new X’Trapolis trains, assembled by Alstom in Ballarat. In addition, the commitment includes more than $1.3 billion for 37 new High Capacity Metro trains and maintenance of the existing fleet.

"The State Government’s policy to include a minimum of 50 percent local content in all orders will be welcomed by Victorian rolling stock manufacturers and suppliers, who employ up to 10,000 people.

"VECCI welcomes the education and training prospects this strategy presents and it is positive that the State Government will work with the TAFE sector on apprenticeship opportunities," Mr Stone said.

"We also welcome the State Government’s continued and long term investment in Victoria’s rail network, as an efficient, convenient and affordable rail system is vital to Victoria’s competitiveness and liveability."

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

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THE Victoria Tourism Industry Council (VTIC), in association with the Victorian Events Industry Council (VEIC), welcomes the State Government's announced additional $20 million annually for the next four years in funding to support the growth of major events throughout Victoria.

"Victoria is the major events capital of Australia and we're delighted this funding will enable us to further bolster our standing, by delivering more events to Melbourne and regional places throughout Victoria," said VTIC Chief Executive Dianne Smith.

"We have consistently urged policy makers to further leverage our strength in major events and we are thrilled that the Andrews Government is using its first budget to recognise the important contribution tourism and events make to our economy and community."

The measure will be provided through a significant boost to the Victorian Major Events Company, lifting its annual budget from $42 million to $62 million.

The tourism and events industry contributes $20 billion annually to the Victorian economy and employs 200,000 people.

"As the Premier has highlighted today, major events draw tourism and create great opportunity for local operators such as restaurants and hotels. VTIC will continue to work with government and operators throughout Victoria to make sure we leverage the job creation possibilites that this measure brings," said Ms Smith.

The Victoria Tourism Industry Council (VTIC) is the peak body for Victoria’s tourism and events industry, providing one united industry voice.

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The Reserve Bank of Australia will cut interest rates when it meets tomorrow (Tuesday) but the Australian dollar won't fall solely on the back of it and any fall will be short lived, a QUT economist says.

Dr David Willis, from QUT Business School, said the RBA was attempting to instil a fall in the Australian dollar to "what is perceived as a fair value level of 72 cents to 75 cents to the US dollar."

The RBA cut rates to a record low of 2.25 percent at its February board meeting but kept the cash rate on hold in March and April.

"Despite this cut to an historic low, the currency stands at 79 cents, and, against the cross rates, hardly changed," Dr Willis said.

"Therefore the market seems to have a different view of what is fair value than the RBA.

"The market sees the US economy and monetary policy clearly outweighing any attempt by the RBA to devalue the AUD, so we are becoming a price taker in a fee currency environment rather than a price maker.

"We have to wait until the US economy is strong enough for the US Federal Reserve to start increasing interest rates before our currency falls in any meaningful way towards the 72 cents the RBA wishes."

Dr Willis said the lack of movement on the Australian dollar following the previous rate cut was a "failure of monetary policy" by the RBA as it attempts to lean into the US currency wind.

"We are clearly now not masters of our own destiny when it comes to currency rates," he said.

"Therefore the RBA now needs to stop spending precious monetary support given the policy is having little or only a very marginal effect on either the domestic economy or currency.

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VECCI Chief Executive Mark Stone said it was a big positive that the State Government’s announced $257 million investment in new regional rail carriages and infrastructure will create nearly 200 Victorian jobs and boost skills in the Geelong region.

"VECCI welcomes the fact that the new carriages will be built by Bombardier in Victoria, securing 64 jobs," Mr Stone said.

"In addition, the new maintenance and stabling yard in Geelong will create 100 jobs during construction, 30 ongoing jobs and include apprenticeship and education opportunities.

"The 21 new VLocity carriages adding an additional 1,500 passengers to the daily capacity of the V/Line system will be welcomed by commuters and leisure travellers.

"We welcome the State Government’s announced budgetary commitments to Victoria’s transport network and look forward to further job creating infrastructure commitments in Tuesday’s budget."

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

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